Mainfreight says world's freight lanes remain open

All 275 of Mainfreight's branches worldwide are open. Photo / File

Mainfreight said the world's freight trade lanes remain open and that its own trading this calendar year remains ahead of where it was in 2019.

"Although we are heading into a period of uncertainty, the world's freight trade lanes remain open," the company told NZX.

"All 275 of Mainfreight's branches worldwide are open and our team is moving freight and supporting the flow of supplies on behalf of our customers," it said.

"While we have seen a decline in air and sea freight to and from our Asian operations, trading across other international trade lanes and domestically within New Zealand, Australia and Europe continues at reasonable levels," it said.

"More recently, China volumes are re-emerging as factories and ports return to normal operations."

Mainfreight's comments about China follow research by broking firm Forsyth Barr last week suggesting that China is fast getting back to work after the disruption caused by the coronavirus crisis.

Forsyth Barr said some major industrial centres had recovered to about 95 per cent of normal capacity while the pace of recovery for smaller businesses was a slower 52 per cent.

Mainfreight said its experience in China "has given us some knowledge of how to operate in this new environment."

The company said it expects its full-year results through to March 31 "will reflect an improvement on the prior year."

Although many companies have been reporting serious impacts from the crisis, other companies have provided similar advice that they continue to operate as usual.

For example, rubber products company Skellerup yesterday said its global businesses continue to operate safely and effectively and that trading has been at expected levels.

Yesterday, Briscoe Group managing director Rod Duke said the worst interruptions to the retailer's supply chain had likely passed with more than half the group's factories now running at full capacity, and the rest operating around 70 per cent.

And last week, AFT Pharmaceuticals reported both brisk demand for its cold and influenza-related medicines and that it hadn't experienced any supply problems from China. AFT also sources its products from India, Malaysia, Europe and North America.

Mainfreight's positive on-the-ground experience isn't being reflected in its share price which is down a further 5.1 per cent at $28 today. The shares are down 30.6 per cent year to date.